Many traders have probably noticed that while the charts for M1 and M5 are hurricane-like, higher timeframes are almost quiet. Given that the basic levels of support and resistance on the H4 timeframe are true in almost 100% of the cases, while at smaller time frames – they are broken through like fragile spring pieces of ice.

More experienced traders have long ago ceased intraday and medium-term strategies trading and switched to the longer expiration period binary options. That is why we are now going to review one of the quite profitable trading strategies for long-term trading.

TRADING RULES

To trade this system we need the MT4 platform, which you can download here.

In addition, you will need to download this archive as well, which contains the indicator and the template to trade this system. Archive files need to be transferred to MT4 terminal and the hidden template needs to be applied to the quotes chart of the financial instrument you are going to trade.

You do not know how to use Meta Trader 4? Then check out its short user guidance.

So, after the archive files are placed to the MT4 data directory the system template can be used for the H4 chart of the instrument you are going to trade.

We took the currency pair USDCHF trading instrument as an example, which is characterized by good pull-backs and average volatility that would be enough to make a profit.

Once we have established a pattern on a price chart for USDCHF, we have the following trading arena.

As you can see, there are all Fibonacci numbers used for trading presented on the grid. At the same time, this grid does not necessary need to be "dragged" together with the quotes chart as it moves with the price being at the same time nothing else but the Moving Average indicator. Said indicator is called MA CHANELS FIBO.

We will be trading ONE-TOUCH binary options that give profit of about 400% for a trade when used in long-term trading.

At the same time, we will buy when the price of the instrument has touched one of the edge lines of the MA CHANELS FIBO indicator marked 61.8%. According to the theory of Fibonacci numbers, this number is considered to be almost magical.

We buy when the price of the traded instrument has touched or moved beyond the lower level of the MA CHANELS FIBO indicator.

We sell when the price of the traded instrument has touched or moved beyond the level of the upper limit of the MA CHANELS FIBO indicator.

That is, in each case, our buying or selling would be facing inward the price channel formed by the MA CHANELS FIBO indicator.

As you can see from the chart of the USDCHF financial asset quotes, all touches of the MA CHANELS FIBO indicator extreme levels ended with a return to the inside of the channel, which is in contrast to similar channel indicators not redrawn and is in reality equal to the quotes history.

APPROPRIATE OPTIONS

First of all, ONE-TOUCH options, Below options (to cover a specified level) and Range options (breakthrough of the price channel) are appropriate for the given type of long-term trading. The most important thing is that all of these options show the profitability of not less than 350% -400%, which will make squeezing almost all available advantages out of the trade possible.

EXPIRATION TIMES

For the given type of trading the expiration times of not less than 1 week should be used. Expiration times should be estimated for each financial asset which will allow you to carry out testing with the MT4 platform.

PROFITABILITY

Let us calculate the profitability of this type of trading. Seven trades can be seen on the USDCHF currency pair quotes chart presented to you, all of which resulting in profit because they meet all the requirements of the above mentioned options terms and conditions. For the initial lot of 100 USD and payouts of 400% the profit would have been at least 2,800 USD. At the same time, why trade just one financial instrument, if your web terminal contains at least 70 pieces of financial assets.

You should carry out testing, then choose the most appropriate tools for trading and continue with it. At least, you will be able to choose about 5-7 assets for trading. Their profitability might not be the same as of those shown in the example and might even be 2 times less, but you should agree that this is also a pretty impressive amount.

MONEY MANAGEMENT

To trade this strategy, we need to use the 5% of the deposit size trades. That is, if your deposit is 1000 USD, then the size of the transaction will be 50 USD. We would like to warn small deposits owners: whatever the profitable trading system is, you should always follow the rules of money management. That is because, with a certain series of losing trades, you will very quickly "halve" your trading deposit.

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